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Pension performance 3.75%

My husband has just received his pension statement saying the value of his fund has grown by 3.75% in the last 9 months taking into account monthly contributions. I have no idea if this is OK or if he is just wasting his money. Does anyone know what growth he should expect from a pension?

Comments

  • GhIFA
    GhIFA Posts: 619 Forumite
    CJBeee wrote: »
    My husband has just received his pension statement saying the value of his fund has grown by 3.75% in the last 9 months taking into account monthly contributions. I have no idea if this is OK or if he is just wasting his money. Does anyone know what growth he should expect from a pension?

    How is it invested?
    I am an IFA. Any comments made on this forum are provided for information only and should not be construed as advice. Should you need advice on a specific area then please consult a local IFA.
  • dunstonh
    dunstonh Posts: 120,224 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I have no idea if this is OK or if he is just wasting his money.

    It could be good or it could be bad. It depends on his risk profile and how he is invested.
    Does anyone know what growth he should expect from a pension?

    There are over 50,000 pension funds and an unlimited variation of investments possible. When you invest, you have an idea of the long term average you may get but short term performance will be more volatile (good years, bad years, nothing years all need averaging out).

    Basically, the return needs to be looked in context to what he is invested in, his risk profile and timescale to retirement.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Well, at least he has done better than cash?

    It all depends on his risk profile and the funds chosen. My latest statement showed a lot more gains than that, but then again I probably have a higher risk profile in that pension. So, tell us what the pension is invested in?

    For instance the Ftse 100 is up 5.31% in the last 8 months, while the Ftse all share is up over 6%.
  • dunstonh
    dunstonh Posts: 120,224 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    It also depends on the date of the valuation as just over a month ago the stockmarkets were down heavily.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • CJBeee
    CJBeee Posts: 16 Forumite
    It is invested in Aviva Series 2 Av mixed 40-85% shares, he is 43years old aiming to retire in 22years and he doesn't want anything too risky. The fund was valued on19th July.
    I hope that covers all the questions, my knowledge of pensions is shockingly poor.
  • dunstonh
    dunstonh Posts: 120,224 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    It is invested in Aviva Series 2 Av mixed 40-85% shares

    A mixed asset fund designed for inexperienced investors. Will never be best but never worst. Cant do much wrong with it.
    and he doesn't want anything too risky.

    Its not too risky.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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